How to Manage a Crowdfunded Coffee Shop Like Many People Cafe

In late 2012, 141 strangers pooled 2,000 yuan each—625,000 yuan total—to open a dream coffee shop in Dongguan, China. A year and a half later, "Many People Cafe" put itself up for sale. What went wrong with this internet-age experiment in collective ownership?

The short answer: too many owners, no clear leadership, and a rotating management system that created chaos. Of the 141 partners, none could agree on strategy, and monthly "shifts" of decision-makers led to clashing visions, inconsistent menus, and staff confusion. Ultimately, the cafe couldn’t sustain itself without centralized control.

What Was ‘Many People Cafe’?

Launched with the tagline "2,000 yuan buys you a piece of a coffee shop," the project quickly drew 141 mostly amateur investors. The cafe opened in April 2012 with 625,000 yuan in capital, making it one of the first crowd-funded coffee shops in Dongguan. Shareholders could contribute as little as one share (2,000 yuan) or more; the most any individual put in was 50,000 yuan, the least just 2,000 yuan.

To speed up setup, organizers used social media (Weibo, Douban) for promotion, crowdsourced ideas, and leveraged shareholders’ networks for registration, location scouting, and marketing. The group formed a legal company, Dongguan Many People Coffee Culture Co., Ltd., with 11 core shareholders acting as registered representatives and the rest as financial backers.

Why the Management Model Failed

Initially, the cafe tried to respect every shareholder’s voice. A 15-person board was elected, including a five-person supervisory committee. All investors had equal voting rights—one person, one vote. To appear fair, the board adopted a monthly rotating leadership system: each director took turns running the cafe for a month, controlling all decisions from menu to events.

This sounded democratic—but didn’t work. Directors had different professional backgrounds (students, writers, white-collar workers, radio hosts), ages, and temperaments. Monthly leadership changes meant constantly shifting visions. One director wanted premium 35-yuan coffees; another insisted on 15-yuan pricing. Product consistency suffered. Staff couldn’t keep up with changing policies. Events ranged from photography nights to financial seminars, creating no coherent brand identity.

Board member Ye Haiyan (also a founder and later interim manager) said, "Everyone imagined a different dream cafe. Without consistent management, the cafe couldn’t build trust or a loyal customer base."

From Rotating Leadership to ‘Limited Dictatorship’

By mid-2013, the rotating model was abandoned after just six months. Management costs were cut—no more stipends for chair or general manager. The board then proposed hiring a professional manager, but no qualified candidate was found. From September 2013, daily ops were handed to a deputy manager, effectively creating an “absence of governance” period. Though the deputy improved beverage R&D (thanks to barista training), big-picture strategy remained stalled.

Tensions grew as shareholders felt sidelined. In early 2014, one member took radical action: they contracted to run the cafe solo, firing all staff. That experiment lasted just one month before collapsing. Ye Haiyan was then granted full operational authority by the board—a shift toward what she calls "limited dictatorship." She now makes most decisions alone, consulting the board only on major issues and disclosing progress online.

Ye admits: "Complete democracy is inefficient. In a 141-owner cafe, seeking universal agreement paralyzes progress. You can’t please everyone—and trying leads to conflict or 'tyranny of the majority.'" Under her guidance, internal arguments have dropped, though debates over transfer fees and strategy persist.

What This Means for Crowdfunded Cafes

Many People Cafe highlights key flaws in crowd-funded models:

• Too Many Stakeholders: 141 owners made consensus nearly impossible.
• Vague Roles: Most shareholders were passive investors with no operational role.
• Rotating Leadership: Monthly management shifts caused instability and inconsistent branding.
• Communication Costs: Frequent votes and meetings drained time and resources.
• No Soul: Without a trusted leader or unifying vision, the project fractured.

Ye now believes the only path forward may be restructuring ownership—offering majority control to a new investor or consolidating shares under a single decision-maker. "Real businesses need defined roles," she says. "Shared dreams sound nice, but they need execution—and that needs leadership."

Frequently Asked Questions

How many people invested in Many People Cafe?

141 individuals invested in the cafe, with each contributing a minimum of 2,000 yuan (most did), for a total of 625,000 yuan raised.

What was the original concept behind Many People Cafe?

The cafe was promoted as a community-owned project: “2,000 yuan gets you a share in a dream coffee shop.” It aimed to let ordinary people collectively open and run a café through crowdfunding.

Why did the rotating management system fail?

Each month a different board member took over full operational control. With diverse and conflicting visions—on pricing, product range, and events—the rotating system led to inconsistency, inefficiency, and staff confusion.

What management model replaced the rotating directors?

After abandoning the rotating system, the cafe briefly tried hiring a professional manager (unsuccessfully), then shifted to letting a deputy manager run daily operations. Eventually, a single board-approved manager (Ye Haiyan) took over most decisions under a “limited dictatorship” model.

Could Many People Cafe have survived?

Possibly. Despite consistent monthly losses earlier on, by late 2013 about one-third of months were profitable, and the cafe had nearly broken even overall. However, unresolved management issues ultimately led to its closure and planned sale.

What’s the best structure for a crowdfunded coffee shop?

Most experts suggest limiting the number of decision-makers, clearly separating investor and operational roles, and consolidating management under a small team or single owner with a long-term vision.

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